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Securities Fraud Defense Attorney

From allegations of insider trading to complex investment scams, Jeff King has secured favorable outcomes for clients facing civil and criminal securities fraud charges. As a reputable and highly experienced securities fraud defense attorney, Jeff King is well-versed in the complex regulations surrounding securities regulations, and will prepare a sound defense strategy based on your unique circumstances.

 

Providing false, deceptive or manipulated information in investment markets for personal financial advantage is considered securities fraud. This white collar crime may be committed by securities brokers, individuals, financial analysts, business accountants, government entities and corporations.  Conviction for securities fraud can not only ruin your professional career and reputation, it can result in jail time and steep fines.

Who Gets Charged With Securities Fraud?

  • A securities broker suspected of “churning” – persuading clients to partake in excessive trades, for the sole purpose of generating commissions
  • Business executives suspected of insider trading
  • Investment brokers suspected of making deceptive statements about a security’s value
  • A mid-level corporate employee of a publicly-traded company suspected of publishing a false quarterly or annual report
  • Corporate employees who fail to adhere to provisions in the Foreign Corrupt Practices Act
  • Investment club organizers who sell securities or give advice about a financial product without a registered license

Enforcement of Securities Fraud

In situations where securities fraud is suspected, a complaint is generally filed with the Securities and Exchange Commission (SEC), which was established by the Securities Exchange Act of 1934 to protect investors and help regulate the fair and orderly operation of securities markets.

 

The SEC has authority to swiftly investigate alleged violations of securities laws and to bring civil actions against suspected perpetrators. The SEC enforcement division utilizes many sources to gather evidence, including market surveillance activities, media reports, investor complaints and tips, reports from self-regulatory organizations and other securities industry sources.

 

When evidence of securities fraud exists, the SEC can ask for a court-ordered injunction that bars further actions that violate securities laws. The injunction can also mandate accounting for frauds, audits, and supervisory provisions. The Securities and Exchange Commission can also seek monetary fines, or the return of illegally-obtained profits. Enforcement actions may be referred to the Department of Justice (DOJ) for criminal prosecution.

Types of Securities Fraud

The Securities and Exchange Commission investigates and prosecutes a wide range of securities fraud cases arising from:

  • Insider trading or advisor misconduct
  • Outsider trading
  • Embezzlement of stocks
  • High yield investment frauds characterized by unrealistic promises
  • Questionable timing of stock option grants
  • Late day trading
  • Accounting fraud
  • Manipulating market prices
  • Ponzi schemes/investment scams
  • Fraudulent business corporations
  • Stealing customer’s funds
  • Stock fraud
  • Pump and dump tactics
  • Inflating reported assets through offshore accounts

State and Federal Securities Fraud Laws

Under provisions set forth in the Texas Securities Act, it is illegal for brokers to sell securities without being a registered dealer. It is also a federal crime for a broker to mislead or present false information to investors.

 

Under Texas Civil Statutes Art. 581-29, it is a felony to:

  • Engage in any fraud or fraudulent practice
  • Employ any device, scheme, or artifice to defraud
  • Knowingly make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading;  or
  • Engage in any act, practice or course of business which operates or will operate as a fraud or deceit upon any person

 

The Securities Act of 1933 and The Securities Exchange Act of 1934 are the two principle federal securities laws. These statutes identify and prohibit specific examples of misconduct in financial markets and empower the SEC with disciplinary authority. These statutes have several objectives aimed at protecting investors and prohibiting misrepresentation, deceit and other fraud in securities sales. In 2002, the government enacted the Sarbanes-Oxley Act (SOX) in response to several high-profile corporate securities fraud scandals. This law mandates strict federal penalties for violating laws over the buying, selling and trading of securities.

Securities Fraud Penalties

The majority of securities fraud offenses are prosecuted as felony crimes. Securities fraud penalties can include:

  • Fines of $5,000 up to $5 million dollars for insider trading fraud convictions
  • Jail time of 5 years per felony offense of securities fraud
  • Probation
  • Restitution of funds to defrauded investors, clients or employees

Dallas Securities Fraud Defense Attorney

If you are facing an investigation by the SEC or have already been indicted, contact Dallas Texas fraud defense attorney Jeff King to discuss your legal options during a confidential case review. By drawing on his vast litigation experience on both sides of the aisle, Jeff King can successfully defend his clients against the most serious of criminal allegations.

 

Additional Securities Fraud Resources:

  1. FBI, Securities Fraud Awareness & Prevention Tips https://www.fbi.gov/stats-services/publications/securities-fraud
  2. US Department of Justice, Securities Fraud https://www.justice.gov/usao/priority-areas/financial-fraud/securities-fraud
  3. Duke Law Journal, What is Securities Fraud? http://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=1518&context=dlj
  4. Texas State Securities Board, Texas Securities Act & Board Rules https://www.ssb.texas.gov/texas-securities-act-board-rules
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THE LAW OFFICE OF
JEFFERY KING, PLLC.
2626 Cole Ave.
Suite 415
Dallas, Texas 75204
T: 469-399-7001
info@jeffkinglaw.com
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